Oracle shares jumped 9% on Wednesday after the company announced impressive third-quarter earnings. The tech giant also reassured investors that it wouldn’t take on more debt in 2026 than already planned, easing concerns about its aggressive data center expansion.
CEO Clayton Magouyrk addressed these concerns directly, stating, “Investing in AI infrastructure costs a lot, but our business model helps us stay profitable.” This comes after Oracle revealed plans last month to raise up to $50 billion in 2026 through a mix of debt and equity, specifically saying they didn’t expect to issue more bonds.
Magouyrk explained how Oracle is funding its rapid growth in AI infrastructure. “We’ve signed over $29 billion in contracts since then with many customers using that new model,” he said. “Customers bringing their own hardware and paying upfront allows us to keep growing without Oracle’s cash flow taking a hit.”
He also highlighted the company’s efficiency, noting that Oracle delivered 90% of its 400-megawatt data centers on time or even early in the third quarter. This focus on timely delivery and flexible financing models helps mitigate the risks of large-scale infrastructure projects.
Fears of an “AI bubble” have recently pushed down software stocks, including Oracle. The company’s stock was down more than 50% from its peak in September and about 15% for the year. The broader iShares Expanded Tech-Software Sector ETF (IGV) also saw an 18% drop in 2026.
Despite these market headwinds, Oracle’s cloud business is thriving. The company reported $8.9 billion in cloud revenue for the third quarter, which includes both infrastructure and software-as-a-service. This marks a significant 44% increase from last year, showing strong demand for their cloud offerings.
Wall Street reacted positively to Oracle’s earnings call. Dan Ives, a senior equity research analyst at Wedbush, wrote that “Oracle’s core AI and cloud numbers and backlog tell a very healthy and robust AI Revolution demand story.” He believes the report offers “a huge relief for the software and tech sector,” suggesting it could help calm broader market anxieties about tech investments.
